Birmingham-area home sales remain elevated in May
Sales: According to the Greater Alabama MLS, May home sales in the Birmingham area increased 33% year-over-year (Y/Y) from 1,297 to 1,725 closed transactions, marking 12 consecutive months of Y/Y gains. Not following seasonal trends, sales decreased 2.9% from April. Sales are now up 25.5% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Birmingham-area housing data, click here.
Inventory: Homes listed for sale decreased 43.3% year-over-year from 4,614 listings one year ago to 3,026 in May. Months of supply (inventory to sales ratio) decreased from 3.6 to 1.8, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in May was $269,900, an increase of 10.6% from one year ago and an increase of 3.8% from April. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in May averaged 17 days on the market (DOM), a record low and 13 days faster than May 2020.
Forecast: May sales were 172 units, or 9.1%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,897 sales for the month, while actual sales were 1,725 units. ACRE forecast a total of 7,896 sales year-to-date, while there were 7,627 actual sales through May, a difference of 3.4%.
New Construction: The 197 new homes sold represent 11.4% of all residential sales in the Birmingham area in May. Total sales increased 5.3% year-over-year. The median sales price in May was $322,500, an increase of 7.3% from April and an increase of 8.2% from one year ago.
Click here to view the entire monthly report.
The Birmingham Area Residential Monthly Report is developed in connection with the Birmingham Association of Realtors.
Editor's Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period May 1 - 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.